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$100 million for flood prevention

The Federal Government will provide up to $100 million for flood mitigation projects such as drains, diversions and higher dam walls.

Transcript

TONY JONES, PRESENTER: A new national fund is being set up to reduce the risk of flooding and possibly lower insurance premiums.

The Federal Government is putting up to $100 million aside for flood mitigation projects such as drains, divergence and higher dam walls. It also expects the states to fund the projects.

The Government predicts insurance premiums could fall in areas where risks are reduced.

BILL SHORTEN, FINANCIAL SERVICES MINISTER: If you diminish the risk, the case for the higher premiums goes down. And, we've seen that happen. There are towns in Queensland which - where they have the flood mitigation works. It's $1,200 versus an average cost of $3,000.

TONY JONES: Another $85 million is also going to Queensland for recovery works and counselling in its most flood-affected towns.